Kingdom appoints supervisory board to family company after arrest of chairman, deepening corporate upheaval

DUBAI—Saudi Arabia is assuming supervisory control of the Saudi Binladin Group and could take a stake in the construction giant, people familiar with the matter said, a sign of Crown Prince Mohammed bin Salman’s willingness to disrupt the established corporate order in the kingdom.

The move further upends a decades-old alliance with the country’s rulers that made the bin Ladens one of the kingdom’s wealthiest families. It comes as the company’s septuagenarian chairman, Bakr bin Laden, remains detained after his arrest in November...